I realised that my exposure to stocks in the tech sector and China is quite high - China Animal Healthcare, GMG Global, Action Asia and TPV Technology. Action Asia does something more downstream than TPV Technology.
With regards to TPV Technology, there is a mandatory offer of HK$5.20 which has just become unconditional. I might make a boo-boo on this one, but having read the first circular (thoroughly), I believe that following the proposed takeover by China Electronics of shares in the company held by Philips, TPV Technology will remain listed.
I think it is great to have a significant shareholder aboard in the very commoditised industry of making flat panel television and pc monitors. But at the same time scary that one of companies I am holding, is being bought over (in this case the stake is enlarged) by a main land firm. There is nothing wrong with that, just that it makes me feel very exposed to China at the moment.
This led me to think about the principles of diversification. Can there really be a way where we can spread our basket of stocks? Like I have already mentioned in the first paragraph, while some stocks are in different sector, they are all exposed to the same geography. Hence when the China growth story expires, the portfolio might suffer more due to concentration?
Will post portfolio screenshots much later at night.